Order 2011-7-5 

Served: July 13, 2011 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

 on the 13th day of July, 2011 

Application of 

 TWIN CITIES AIR SERVICE, LLC 

for authority to engage in scheduled passenger 

operations as a commuter air carrier under 

49 U.S.C. § 41738 

Docket DOT-OST-2011-0032 

ORDER TO SHOW CAUSE 

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY 

Summary 

By this order, we tentatively find that Twin Cities Air Service, LLC (“Twin Cities”) is a 

citizen of the United States and is fit, willing, and able to provide scheduled passenger 

operations as a commuter air carrier, subject to conditions. 

Background 

Section 41738 of Title 49 of the United States Code (“the Transportation Code”) and 

section 298.21(d) of the Department’s Aviation Economic Regulations direct us to 

determine whether companies proposing to provide scheduled passenger service as 

commuter air carriers are “fit, willing, and able to perform the service,” and to ensure that 

all operations relating to this service conform to the safety standards established by the 

Federal Aviation Administration (“FAA”). In making fitness findings, the Department 

uses a three-part test that reconciles the Airline Deregulation Act’s liberal entry policy with 

Congress’ concern for operational safety and consumer protection. The three areas of 

inquiry that must be addressed in order to determine an air carrier’s fitness are whether the 

applicant: (1) will have the managerial skills and technical ability to conduct the proposed 

operations, (2) will have sufficient financial resources to commence the operations 

proposed without posing an undue risk to consumers or their funds, and (3) will comply 

with the Transportation Code and regulations imposed by Federal and State agencies. We 

must also determine that the applicant is a U.S. citizen. 

On February 22, 2011, Twin Cities filed an application in Docket DOT-OST-2011-0032 

for authority to conduct scheduled passenger operations as a commuter air carrier pursuant 

to section 41738 of the Transportation Code. Twin Cities accompanied its application with 
2

the fitness information required by section 204.3 of our regulations, some of which was 

filed under seal, and subsequently filed additional information at our request.1

 

No answers to the application were received and no special issues regarding the applicant 

have come to our attention. Under these circumstances, we propose to decide the issue of 

Twin Cities’ fitness on the basis of the written record. Upon review of the information in 

the application and the safety and compliance information on the carrier received from the 

FAA, we tentatively conclude that Twin Cities is a U.S. citizen and is fit, willing, and able 

to operate its proposed commuter services, subject to conditions. However, we will give 

interested persons an opportunity to show cause why we should not adopt as final these 

tentative findings and conclusions. 

FITNESS 

The Company 

Twin Cities was initially organized as a corporation under the laws of the State of Maine in 

1992.2 The company operates as an air taxi under 14 CFR Part 298 and holds a Federal 

Aviation Regulations (“FAR”) Part 135 operating certificate from the FAA. Twin Cities 

currently conducts public charter flights between Portland, Maine, and Yarmouth, Nova 

Scotia, under Part 380 of the Department’s Public Charter Rules (14 CFR Part 380).3 Twin 

Cities is owned by Nathanair, Inc. (“Nathanair”) (51 percent) and Liberty Aviation, LLC 

(“Liberty Aviation”) (49 percent).4

 

1

 Twin Cities filed a motion for confidential treatment of its financial statements and forecast, credit letter, 

and commercial agreements. Upon review, the Department, by letter dated April 5, 2011, granted its request 

in part, informed Twin Cities that certain information for which it requested confidentiality did not warrant 

such treatment, and directed the applicant to file this information in the public docket, which the applicant 

did on May 23, 2011. In addition, Twin Cities supplemented its application with additional information on 

May 9 and May 23, 2011, again requesting confidential treatment for certain documents. By letter dated 

May 27, 2011, we granted confidential treatment to those exhibits, but directed the applicant to file 

summaries and, if applicable, updates of this information in the public docket, which it did on May 31, 2011. 

Twin Cities provided further clarification on June 23, 2011.

2

 Formerly known as Twin Cities Air Service, Inc., the company was formed under the laws of the State 

of Maine in 1992 as a Subchapter S corporation by Roger and Lillian Leblanc and provided aircraft charters. 

In approximately 1999, the Leblancs formed Bel Air, Inc. (“Bel Air”), a qualified subchapter S subsidiary 

which provided flight school and fixed base operations. 

 Nathan Humphrey purchased Twin Cities Air Service, Inc., in July 2002 from the Leblancs, changing its 

name to Nathanair, Inc. (“Nathanair”). Also in July 2002, Nathan Humphrey formed Twin Cities Air 

Services, LLC (“Twin Cities”), a limited liability company, under the laws of the State of Maine, and the 

tangible assets of Nathanair were transferred to Twin Cities in a tax-free exchange for an interest in Twin 

Cities. Mr. Humphrey owns 100 percent of Nathanair and 51 percent of Twin Cities; Liberty Aviation, LLC 

owns the remaining 49 percent of Twin Cities. Bel Air remains a wholly owned subsidiary of Nathanair, 

owning a hangar in Auburn, Maine, which is rented to Twin Cities, and has no other aviation related 

operations. 

3

 Part 380 defines a U.S. public charter operator as any person who (1) undertakes to engage indirectly in 

air transportation operations and who uses for such transportation the services of a direct air carrier, (2) is a 

citizen of the United States as defined in 49 U.S.C. 40102(a), and (3) is authorized to engage in the formation 

of groups for transportation on Public Charters in accordance with this part. 4

 See Citizenship section of this order for detailed ownership information on Liberty Aviation, LLC. 
3

Managerial Competence 

Twin Cities employs 15 people, and the following individuals serve as the company’s key 

management and technical personnel: 

 Nathan Humphrey – President and Director of Operations 

 Dale Stewart – Chief Pilot 

 Ben Mosher – Director of Maintenance 

Mr. Nathan Humphrey, an Airline Transport Pilot, serves as President and Director of 

Operations of Twin Cities. He is the sole owner of Nathanair, which is one of two owners 

of and holds 51 percent of Twin Cities. Mr. Humphrey served as a pilot with Charter Fleet 

of Sanford, Maine (2000-2001) and Executive Jet Management (2001-2002), prior to his 

purchase of Twin Cities. In addition, Mr. Humphrey previously held positions at Cape 

Air/Nantucket Airlines (1996-2000; Director of Pilot Training), Maine Aviation 

Corporation (1996; pilot, Marketing Director), Kalitta Flying Service (1995-1996; pilot), 

Oxford Aviation (1992-1993; Chief Pilot, General Manager), Skyline Aviation (1990-

1992; flight instructor), Caribou Flying Service (1989-1990; flight instructor, 

Captain/pilot), and Northeast Air (1988-1989; flight instructor). 

Mr. Dale Stewart, an Airframe and Powerplant Mechanic and Airline Transport Pilot, has 

been employed by Twin Cities since 1994. He has also served at Twin Cities as 

Maintenance Director (2004-2006), General Manager (2002-2010), and Chief Pilot (2002-

2004; 2006-2010; 2011-present), as well as flight instructor (1996-present) and charter 

pilot (1997-present). Prior to Twin Cities’ purchase by Mr. Humphrey, Mr. Stewart held 

the positions of aviation maintenance technician (1994-1996), line service (1994-1995), 

and Chief Flight Instructor (2000-2002). Mr. Stewart has 7,100 total hours of flight time, 

including over 3,000 hours on Cessna 400 series and over 400 hours on Cessna 300 Series, 

encompassing the aircraft Twin Cities will use in its scheduled operations. He holds a B.S. 

in aviation technology from LeTourneau University in Longview, Texas. 

Mr. Ben M. Mosher, an Airframe and Powerplant Mechanic, has been Director of 

Maintenance at Twin Cities since 2005, having previously held the same position from 

1995 to 2004. From 2004 to 2005, Mr. Mosher was the owner and operator of Eaglewings 

Aviation in Mechanic Falls, Maine, and was not employed by Twin Cities. Mr. Mosher 

previously served as an aircraft mechanic at Oxford Aviation (1994-1995), Master 

Aviation (1993), and Bridgeport Air Service (1991-1993) and as Lead Aircraft Mechanic 

at South Central Airlines (1985-1991). Mr. Mosher has experience with Cessna 300 series 

and Cessna 401, 402, 414, 421, and 441 aircraft, encompassing the aircraft Twin Cities 

will use in its scheduled operations. He has held his mechanic certificate since 1985 and 

has an A.S. degree in Aviation Maintenance Technology from LeTourneau College (now 

LeTourneau University) in Longview, Texas. 
4

In view of the experience and background of the applicant’s key personnel, we tentatively 

conclude that Twin Cities has the management skills and technical ability to conduct its 

proposed commuter service.5

 

Financial Condition and Operating Proposal 

If granted the commuter authority it seeks, Twin Cities plans to provide scheduled 

passenger service, initially operating six roundtrip flights weekly between Portland, Maine 

(“PWM”), and Yarmouth, Nova Scotia (“YQI”), during the summer peak months of June 

through August. For the remainder of the year, Twin Cities expects to operate three 

roundtrips weekly. Service will be provided using three Cessna 402Cs and one Cessna 

310R, each with seven seats. 

Twin Cities provided forecasts of its pre-operating costs and first-year revenues and 

expenses for its proposed commuter operations. The applicant will operate the same 

aircraft currently used in its air taxi operations. Twin Cities indicated that all necessary 

infrastructure to operate as a commuter is in place, including management and key 

technical personnel and maintenance facilities, and it expects to incur no additional 

expenses associated with its FAA certification efforts. Therefore, Twin Cities expects to 

incur only the incremental costs associated with expanding its existing air taxi operations 

to include commuter air carrier operations. 

Twin Cities projects that it will incur approximately $2,008,273 in first-year expenses.6

 

Upon review of these forecasts, we find Twin Cities’ expense projections to reasonable and 

estimate that Twin Cities will need approximately $503,000 to meet the Department’s 

financial fitness criteria.7

Twin Cities’ balance sheet, dated December 31, 2010, shows total current assets of 

$533,596 and total current liabilities of $475,024, giving the applicant positive working 

capital of $58,572. In addition, total members’ capital is $546,383. 

In its application, Twin Cities indicates that it has sufficient funds to meet the 

Department’s financial requirement. In support of its financial condition, Twin Cities has 

provided copies of true and executed agreements with Northeast Trading Corporation 

 

5

 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates certain 

of the air carrier's key personnel with respect to the minimum qualifications for those positions as prescribed 

in the FARs. The FAA’s evaluation of these key personnel provides an added practical and in-person test of 

their skills and technical ability. 

6

 Initially, Twin Cities proposed to provide five weekly scheduled flights, with a total of seven weekly 

scheduled flights during the peak months of July and August, and its expected annual expenses were 

approximately $2,309,211. Subsequently, on May 9, 2011, Twin Cities supplemented its application and 

provided a revised operating plan along with revised projected annual expenses of approximately $2,008,273. 

7

 In establishing financial fitness, the Department typically asks an applicant to demonstrate that it has 

access to financial resources sufficient to cover its pre-operating expenses and the expenses that are 

reasonably projected to be incurred during three months of operations. In determining available resources, 

projected revenues are generally not included. The $503,000 listed above consists of one-quarter of Twin 

Cities’ estimated first-year expenses. 
5

showing that, as of May 9, 2011, the applicant has access to a $600,000 line of credit. In 

addition, the applicant provided third-party verification showing that, as of February 22, 

2011, it had available credit of $52,000 on one line of credit in its name and a total balance 

of $17,000 on deposit in two accounts in its name. 

In light of the foregoing, we tentatively conclude that Twin Cities will have access to 

sufficient financial resources to enable it to commence its proposed operations without 

posing an undue risk to consumers or their funds.8

 

Compliance Disposition 

Twin Cities states that there is one pending enforcement action against it. On September 

24, 2009, Twin Cities was advised by the FAA that it proposed to assess a civil penalty of 

$21,450 against Twin Cities for alleged violations. In particular, the FAA found that Twin 

Cities failed to receive a DOT-required verified negative drug test result prior to hiring an 

employee for a safety-sensitive function and prior to transferring another employee to a 

safety-sensitive function. On November 1, 2010, the FAA amended the civil penalty and 

revised the assessed amount to $10,725. Twin Cities began monthly payments on 

November 12, 2010, and is scheduled to pay the penalty in full by October 15, 2011. 

Previously, Twin Cities had received warning letters, dated November 2, 1993, and March 

24, 1999, from the FAA for drug abatement program and testing issues. On October 10, 

2002, Twin Cities received a letter of correction for drug abatement program and testing. 

None of the three letters resulted in civil penalties. Twin Cities also disclosed two prior 

aircraft accidents or incidents, both of which occurred over 10 years ago and prior to the 

purchase of Twin Cities by Nathan Humphrey. 

Twin Cities states that there are no other pending investigations, enforcement actions, or 

formal complaints filed by the Department against it, its key personnel, or persons having a 

substantial interest in it with respect to compliance with the Transportation Code or the 

Department’s regulations. In addition, Twin Cities states that there are no actions or 

outstanding judgments against it, its owners, or its key personnel, nor have there been any 

charges of unfair, deceptive or anti-competitive business practices, or of fraud, felony or 

antitrust violations brought against any of these parties. 

Our search of the Department’s records found no significant compliance problems with 

Twin Cities. Further, the FAA advises us that it is working with Twin Cities in connection 

with the applicant's efforts to obtain commuter operating authority from that agency, and it 

knows of no reason why we should not find Twin Cities fit. 

In light of these circumstances, we tentatively conclude that Twin Cities has the proper 

regard for the laws and regulations governing its services to ensure that its aircraft and 

 

8

 As is our practice, prior to making any authority awarded to Twin Cities effective, we will require the 

company to demonstrate that it continues to have the financial resources needed to meet our financial fitness 

criteria. 
6

personnel conform to applicable safety standards, and that acceptable consumer relations 

practices will be followed. 

CITIZENSHIP 

Section 41102 of the Transportation Code requires that authority to engage in air 

transportation be held only by citizens of the United States as defined in 49 U.S.C. 

40102(a)(15). That section requires that the president and two-thirds of the Board of 

Directors and other managing officers be U.S. citizens, that at least 75 percent of the 

outstanding voting interest be owned by U.S. citizens, and that the air carrier must be 

under the actual control of U.S. citizens. 

As discussed earlier, Twin Cities is a Maine limited liability company, owned by Nathanair 

(51 percent) and Liberty Aviation (49 percent). Nathanair is a Maine corporation, owned 

100 percent by Nathan Humphrey, a United States citizen. 

Liberty Aviation is a limited liability company formed under the laws of the State of Maine 

in 2004 with nine initial members. Approximately two years ago, Tim Varney, an original 

member of Liberty Aviation, turned in his five percent stock share, which has not been 

reallocated within Liberty Aviation, leaving eight current members, each of whom is a 

U.S. citizen. These eight members, are: (1) Joseph Bedard (5 percent), (2) Seal Bay, LLC 

(5 percent),9

 (3) Birddog, LLC (5 percent),10 (4) The Loaf, LLC (5 percent),11 (5) The Ovar 

Holdings, LLC (18.75 percent),12 (6) The Horse Rider Holdings, LLC (18.75 percent),13

(7) The Cowboy Holdings, LLC (18.75 percent),14 and (8) The Madness Holdings, LLC 

(18.75 percent).15

Further, all of Twin Cities’ key personnel are identified as U.S. citizens and the company 

has supplied an affidavit attesting that it is a citizen of the United States and under the 

actual control of U.S. citizens. Our review of Twin Cities’ citizenship has uncovered no 

reason to suggest that control of Twin Cities rests with non-U.S. citizens. 

 

9

 Seal Bay, LLC, formed under the laws of the State of Maine, is solely owned by Mr. James G. Stanley, 

Jr., a U.S. citizen. 

10 Birddog, LLC, formed under the laws of the State of Maine, is solely owned by Mr. David R. Burton, a 

U.S. citizen. 

11 The Loaf, LLC, formed under the laws of the State of Maine, is solely owned by Mr. Fred Forsley, a 

U.S. citizen. 

12 The Ovar Holdings, LLC was formed under the laws of the State of Maine and is solely owned by Mr. 

Andrew Bedard, a U.S. citizen. The company’s 18.75 percent share of Liberty Aviation is held by a 

bankruptcy trustee, John C. Turner, who is a United States citizen. 13 The Horse Rider Holdings, LLC, formed under the laws of the State of Maine, is solely owned by Ms. 

Adriana Liberty, a U.S. citizen. 

14 The Cowboy Holdings, LLC, formed under the laws of the State of Maine, is solely owned by Mr. 

George Liberty, a U.S. citizen. 

15 The Madness Holdings, LLC, formed under the laws of the State of Maine, is solely owned by Mr. 

Maxwell Liberty, a U.S. citizen. 
7

Based on the above, we tentatively conclude that Twin Cities is a citizen of the United 

States and is fit, willing, and able to provide air transportation services as a commuter air 

carrier. 

OBJECTIONS 

We will give interested persons 7 days following the service date of this order to show 

cause why the tentative findings and conclusions set forth here should not be made final; 

answers to objections will be due within 3 days thereafter.16 We expect that persons 

objecting to our tentative findings and conclusions will support their objections with 

relevant and material facts. We will not entertain general, vague, or unsupported 

objections. If no substantive objections are filed, we will issue an order that will make 

final our tentative findings and conclusions with respect to Twin Cities’ fitness and 

commuter authority. 

EFFECTIVE COMMUTER AUTHORIZATION 

CONDITIONS AND LIMITATIONS 

In the event that we find Twin Cities fit, willing, and able to conduct the proposed 

commuter service, we will issue to it a Commuter Air Carrier Authorization. However, that 

authorization will not become effective until the air carrier has fulfilled all requirements 

for effectiveness as set forth in the Terms, Conditions, and Limitations attached to its 

authorization.17 In addition, consistent with the applicant’s proposed operations, we 

propose to limit any authority issued to Twin Cities to operations using aircraft that can be 

operated under FAR Part 135 (in effect, aircraft with no more than 9 seats in scheduled 

passenger operations). Should Twin Cities propose to operate larger aircraft or conduct 

operations that would require certification from the FAA under 14 CFR Part 121, our 

fitness findings might no longer apply. Therefore, should Twin Cities desire to operate 

aircraft that would require certification from the FAA under Part 121, it must first provide 

the Department with at least 45 days advance notice of such plans and provide updated 

information establishing its fitness for such expansion.18

Furthermore, we remind Twin Cities of the requirements of 49 U.S.C. 41110(e). 

Specifically, that section requires that, once an air carrier is found fit initially, it must 

 

16 On July 12, 2011, Twin Cities filed an emergency exemption application in Docket 

DOT-OST-2011-0127 to permit it to immediately begin scheduled passenger operations as a commuter air 

carrier until mid-September while its current application for commuter authority is pending. It is not the 

Department’s policy to grant such exemptions. However, while the normal answer period for filing 

objections to this order would be 14 days, we have decided, based upon the specific circumstances presented 

here, to shorten the answer period to 7 days, with answers to objections due 3 days thereafter. As stated 

previously, Twin Cities will provide additional flights to the same markets it currently serves as an air taxi. 

Moreover, no objections were filed to the application at issue. 

17 We also reserve the right to stay the effectiveness of Twin Cities’ authority if any new information 

becomes available to us that warrants such action. 

18 We note that the operation of larger aircraft could require the air carrier to have access to additional 

funds and/or hire additional management personnel. 
8

remain fit in order to hold its authority. To be assured that commuter air carriers continue 

to be fit after effective authority has been issued to them, we require that they supply 

information describing any subsequent substantial changes they may undergo in areas 

affecting fitness. In this regard, should Twin Cities propose any substantial changes in its 

ownership, management, or operations, it must first comply with the requirements of 

section 204.5 of our rules.19 The compliance of the company with these requirements is 

essential if we are to carry out our responsibilities under the Transportation Code.20

Additionally, if the air carrier is granted effective authority, it would be required to submit 

a detailed progress report, within 45 days following the end of its first year of commuter 

flight operations, to the Air Carrier Fitness Division. The submission of a first-year 

progress report is conditioned upon all newly authorized commuter air carriers and was 

adopted as policy by the Department to aid in monitoring the fitness of new air carriers. 

The report should include a description of Twin Cities’ current operations (number and 

type of aircraft, principle markets served, total number of full-time employees), a summary 

of how its operations have changed during the year, a discussion of any changes it 

anticipates from its current operations during its second year, current financial 

statements,21 and a listing of current senior management and key technical personnel. The 

air carrier should also be prepared to meet with staff members of the Fitness Division to 

discuss its current and future operations. 

ACCORDINGLY: 

1. We direct all interested persons to show cause why we should not issue an order finding 

that Twin Cities Air Service, LLC, is fit, willing, and able under 49 U.S.C. § 41738 to 

provide scheduled passenger service as a commuter air carrier using small aircraft pursuant 

to Part 135 of the Federal Aviation Regulations. 

2. We direct any interested persons having objections to the issuance of an order making 

final any of the proposed findings, conclusions, or the award of authority set forth here to 

 

19 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its 

operations, ownership, or management, and to determine what additional information, if any, will be required 

under section 204.5. Moreover, by notice dated July 21, 1998, the Department requested air carriers to 

provide a 30-day advance notification of any proposed change in ownership, restructuring, or recapitalization. 

If the air carrier fails to file the information or if the information fails to demonstrate that the air carrier will 

continue to be fit upon implementation of the substantial change, the Department may take such action as is 

appropriate, including enforcement action or steps to modify, suspend, or revoke the air carrier's commuter 

authority. 

20 We also remind Twin Cities about the requirements of section 204.7 of our rules. This section provides, 

among other things, that (1) the commuter authority granted to a company shall be revoked if the company 

does not commence actual flying operations under that authority within one year of the date of the 

Department’s determination of its fitness; (2) if the company commences operations for which it was found 

fit and subsequently ceases such operations, it may not resume commuter operations unless its fitness has 

been redetermined; and (3) if the company does not resume operations within one year of its cessation, its 

authority shall be revoked for dormancy. 

21 These financial statements should include a balance sheet as of the end of the company’s first full year of 

actual flight operations and a 12-month income statement ending that same date. 
9

file them with Department of Transportation Dockets, 1200 New Jersey Avenue, S.E., 

West Building Ground Floor, Rm. W12-140, Washington, D.C. 20590, in Docket DOTOST-2011-0032, and serve them upon all persons listed in Attachment A no later than 

7 days after the service date of this order; answers to objections shall be filed no later than 

3 days thereafter. 

3. If timely and properly supported objections are filed, we will accord full consideration 

to the matters or issues raised by the objections before we take further action. 

4. In the event that no objections are filed, we will consider all further procedural steps to 

be waived, and we will enter an order making final our tentative findings and conclusions 

set out here and awarding Twin Cities Air Service, LLC, a Commuter Air Carrier 

Authorization, subject to the attached specimen Terms, Conditions, and Limitations. 

5. We deny the request filed in Docket DOT-OST-2011-0127 from Twin Cities Air 

Services, LLC for an exemption to begin scheduled passenger operations as a commuter air 

carrier pending the Department’s action on its commuter application. 

6. We will serve a copy of this order on the persons listed in Attachment A 

7. We will publish a summary of this order in the Federal Register. 

By: 

SUSAN L. KURLAND 

Assistant Secretary for Aviation 

and International Affairs 

An electronic version of this document is available on the World Wide Web at: 

http://www.regulations.gov 
 

Attachment 

Specimen

Terms, Conditions, and Limitations 

Twin Cities Air Service, LLC 

is authorized to engage in scheduled passenger air transportation operations as a commuter 

air carrier. 

This authority is subject to the following provisions: 

(1) The authority to conduct scheduled passenger operations will not become effective 

until six (business) days after the Department has received the following documents; 

provided, however, that the Department may stay the effectiveness of this authority at any 

time prior to that date: 

(a) A copy of the holder's Air Carrier Certificate and Operations 

Specifications authorizing such operations from the Federal Aviation 

Administration (FAA). 

(b) A certificate of insurance on OST Form 6410 evidencing liability 

insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its 

aircraft. 

(c) A statement of any changes the holder has undergone in its ownership, 

key personnel, operating plans, financial posture, or compliance history, since 

the date of the Show Cause Order in this case. 

(d) A revised list of pre-operating expenses already paid and those 

remaining to be paid, as well as independent verification that the holder has 

available to it funds sufficient to cover any remaining pre-operating expenses 

and to provide a working capital reserve equal to the operating costs that 

would be incurred in three months of operations. 

(2) Pending receipt of effective authority, the holder may not accept payment of any kind 

(i.e., cash, check, or credit card) or issue tickets for scheduled passenger operations, and any 

advertisement or listing of flights by the holder must prominently state: "This service is 

subject to receipt of government operating authority." 

(3) The holder shall at all times conduct its operations in accordance with the 

requirements of 14 CFR Part 298 and any other regulations prescribed by the Department of 

Transportation for the services authorized here, and with such other reasonable terms, 

conditions, and limitations as the Department of Transportation may prescribe in the public 

interest. 

(4) The holder may not operate aircraft designed to have a maximum passenger capacity 

of more than 60 seats or a maximum payload capacity of more than 18,000 pounds. 
2

(5) The holder’s authority is limited to operations conducted pursuant to Part 135 of the 

Federal Aviation Regulations. In the event that the holder wishes to institute operations that 

would require Part 121 certification from the FAA, it must first be determined fit for such 

operations. 

(6) The holder's authority under this certificate is effective only to the extent that such 

operations are also authorized by the Federal Aviation Administration (FAA), and comply 

with all U.S. Government requirements concerning security, including, but not limited to 49 

CFR Part 1544.

(7) The holder shall at all times remain a "Citizen of the United States" as required by 49 

U.S.C. 40102(a)(15). 

(8) The holder shall maintain in effect liability insurance coverage as required under 14 

CFR Part 205. Failure to maintain such insurance coverage will render this authority 

ineffective, and this or other failure to comply with the provisions of Subtitle VII of Title 49 of 

the United States Code or the Department's regulations shall be sufficient grounds to revoke 

this authority. 

(9) In the event that the holder receives effective scheduled passenger authority, the 

following additional conditions will apply: 

(a) The holder may reduce or terminate service at any point or between 

any two points, subject to compliance with the provisions of 49 U.S.C. 41734 

and all orders and regulations issued by the Department of Transportation 

under that section. 

(b) The holder may not provide scheduled passenger air transportation to 

or from Dallas (Love Field), Texas, except within the limits set forth in section 

29 of the International Air Transportation Competition Act of 1979, as 

amended by section 337 of the Department of Transportation and Related 

Agencies Appropriations Act, 1998. 

(10) Should the holder propose any substantial changes in its ownership, management, or 

operations (as that term is defined in 14 CFR 204.2(l)), it must first comply with the 

requirements of 14 CFR 204.5. 

(11) In the event that the holder does not commence actual flying operations as a 

commuter air carrier under this authority within one year of the date of the Department's 

determination of its fitness, its commuter authority shall be revoked for dormancy. Further, 

in the event that the holder commences but subsequently ceases all scheduled passenger 

operations, the authority granted here shall be suspended under the terms of 14 CFR 204.7 

 

 To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, 

before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal 

Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security 

Administration has determined that security is adequate to allow such airport(s) to be served. 
3

and the holder may neither recommence nor advertise such operations unless its fitness to do 

so has been redetermined by the Department. Moreover, if the holder does not resume such 

operations within one year of its cessation, its commuter authority shall be revoked for 

dormancy. 
 

Attachment A 

SERVICE LIST FOR TWIN CITIES AIR SERVICE, LLC 

MR EDWARD P. FABERMAN 

WILEY REIN LLP 

1776 K STREET NW 

WASHINGTON DC 20006 

MR BERNARD STANKUS RTS-42 

OFFICE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590 

MS KATRINA A. SKOWRON 

WILEY REIN LLP 

1776 K STREET NW 

WASHINGTON DC 20006 

 MR WILLIAM J WEBER 

CERTIFICATION MANAGER 

FAA AFS-900 

45005 AVIATION DRIVE SUITE 131 

DULLES VA 20166 

MR NATHAN HUMPHREY 

PRESIDENT 

TWIN CITIES AIR SERVICE, LLC 

81 AIRPORT DRIVE 

AUBURN ME 04210 

MR PETER LYNCH 

ASST CHIEF COUNSEL FOR ENFORCEMENT 

FAA/AGC-300 

800 INDEPENDENCE AVE SW 

WASHINGTON DC 20591 

MR GARY READIO 

AVIATION SAFETY INSPECTOR 

FAA PORTLAND FSDO-65 

PORTLAND ME 04102 

MS ANNE SUISSA 

OFFICE OF AIRLINE INFORMATION 

DOT/RSPA/BTS E-36 

1200 NEW JERSEY AVE SE 

WASHINGTON DC 20590 

FAA FLIGHT STANDARDS DISTRICT OFFICE 

412 YELLOWBIRD ROAD 

PORTLAND ME 04102 

MANAGER 

PORTLAND INTERNATIONAL JETPORT 

1001 WESTBROOK STREET 

PORTLAND ME 04102 

MANAGER 

YARMOUTH INTERNATIONAL AIRPORT 

PO BOX 386 

YARMOUTH NOVA SCOTIA 

CANADA B5A 4B3